New York Gov. Kathy Hochul released a statement Wednesday saying the state’s Republican congressional delegation should demand a full repeal of the cap on the federal deduction for state and local taxes, or SALT, as negotiations on its future continue with Donald Trump about to return to the White House.

“The New York Republican delegation owes middle class New Yorkers a full repeal of the SALT cap. This cap has cost New Yorkers as much as $12 billion every year since it took effect in 2018, robbing middle-class families of their hard-earned money,” Hochul said in the statement. “Republicans have drained billions directly from the pockets of their own constituents, and now it’s time for them to deliver. No excuses. No half measures. It's all or nothing – New Yorkers deserve a full repeal.”

SALT is expected to be part of the negotiations as Republicans look to bundle together a bill that includes extending the 2017 tax cuts they passed during Trump’s term first term in office, which will expire at the end of this year. The cap disproportionately hurts taxpayers in blue states like New York, where property and state income taxes are relatively high.

Trump is scheduled to meet in the coming days with the so-called “SALT Republicans,” who have been vocal over the last few years in wanting the $10,000 cap on tax deductions lifted, including Long Island Rep. Nick LaLota and Hudson Valley Rep. Mike Lawler. House Republicans from those districts have spent the last year trying to convince their colleagues from more conservative states to increase the deduction but have been unsuccessful. Trump, while campaigning on Long Island last year, pledged to “get SALT back.”

On Tuesday, Democratic Rep. Pat Ryan, also of the Hudson Valley, urged Trump to include Democrats in discussions regarding SALT.

What happens with SALT will likely also play a role in what happens with the state budget, which is due on April 1. State lawmakers reconvened in Albany for a new legislative session on Wednesday.

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